Lib Dems sell out

1984ReturnsForReal_2

PhylPho wrote: »

It's difficult to type this on account of the way the tears are wrecking this keyboard but our family all voted LibDem this time and are, oh heck, the tears are splashing again, we are all of us unutterably unconsolably

d e l i g h t e d.

:rotfl::rotfl::rotfl:

Made me smile....

Degenerate

MobileSaver wrote: »

I think most people are intelligent enough and impartial enough to judge them on what they achieve over the next few years rather than any knee-jerk reaction to an emergency budget that everyone knew would be painful.

You say that like this "emergency budget" was the only option. Everyone knew deficit reduction was necessary, that's why every major party had set out plans for fiscal retrenchment, but the timetable and scope of such measures was certainly up for debate. Labour (and the LibDems before the election) proposed a strategy based on achieving sufficient growth before inflicting the strain of fiscal tightening. The Tories have exaggerated the scale and immediacy of the problem in order to use this once in a generation opportunity to impose major cuts - cuts that many noted economist believe will inflict serious economic damage. This has much more to do with their ideological commitment to a smaller state than any true economic necessity.

So yes indeed, everyone knew a Tory emergency budget would be painful, but perhaps that's why the majority of people voted for parties that supported Alasdair Darling's fiscal timetable. Who was to know that one of those parties would simply ditch their promises within days of the election for a whiff of power? Could you remind me again why people shouldn't judge them for that?

Degenerate

PhylPho wrote: »

It's difficult to type this on account of the way the tears are wrecking this keyboard but our family all voted LibDem this time and are, oh heck, the tears are splashing again, we are all of us unutterably unconsolably

d e l i g h t e d.

As you're so delighted, would you care to elaborate on why you didn't just vote Tory, and what you think LibDem participation in this coalition is delivering that a plain Tory government wouldn't? I see only token measures designed to placate the gullible, while the Tory agenda goes full steam ahead.

lvader

Degenerate wrote: »

The Tories have exaggerated the scale and immediacy of the problem in order to use this once in a generation opportunity to impose major cuts - cuts that many noted economist believe will inflict serious economic damage. This has much more to do with their ideological commitment to a smaller state than any true economic necessity.

The world has spoken, the pound has since risen against pretty much all global currencies.

1984ReturnsForReal_2

lvader wrote: »

The world has spoken, the pound has since risen against pretty much all global currencies.

That is the Corporation Tax drop speaking not The World...

Degenerate

lvader wrote: »

The world has spoken, the pound has since risen against pretty much all global currencies.

If you think that somehow represents a vote of confidence in this budget, then you're merely displaying your own economic ignorance.

Deflationary policies increase the value of a country's currency, but they certainly don't help the economy or citizens of that country. Indeed, China enjoyed the most remarkable economic boom of the last two decades off the back of a deliberately weak currency.

lvader

1984ReturnsForReal wrote: »

That is the Corporation Tax drop speaking not The World...

CGT went up not down and really has little baring on the currency market. The pound went up because it stands a better chance of keeping it's AAA rating intact. Once your credit rating starts going down it's a downward spiral to hell as the cost of borrowing get higher and higher. The UK doesn't have the ECB to bale us out.

Thrugelmir

Degenerate wrote: »

Labour (and the LibDems before the election) proposed a strategy based on achieving sufficient growth before inflicting the strain of fiscal tightening.

What strategy? "Us", out in the private sector are treading water. Over the past 15 months there has been a huge squeeze rippling through B2B. As everybody cuts costs. Certainly not saying its doom and gloom. But its more about maintaining market share than having any plans for expansion

lvader

Degenerate wrote: »

If you think that somehow represents a vote of confidence in this budget, then you're merely displaying your own economic ignorance.

Deflationary policies increase the value of a country's currency, but they certainly don't help the economy or citizens of that country. Indeed, China enjoyed the most remarkable economic boom of the last two decades off the back of a deliberately weak currency.

Chinas currency was (recently changed) pegged to the US$ which means it has appreciated just the the US$ has.

Fitch Ratings, which said June 8 the U.K. may lose its AAA rating if it fails to speed cuts, called today’s budget a “strong statement of intent.”
The fiscal tightening amounting to about 40 billion pounds a year by 2015 would nearly erase a deficit that reached 11 percent of gross domestic product in the last fiscal year. About four-fifths of the correction will be based on spending cuts with tax increases accounting for the rest.
“It’s a pretty severe fiscal tightening,” said George Buckley, chief U.K. economist at Deutsche Bank AG in London. “They’ve had to deliver and the ratings agencies probably won’t act to downgrade.”
The pound and gilts rose as Osborne announced the plan would eliminate the structural deficit by 2015, with net debt peaking at 70 percent of gross domestic product by 2014. He rejected suggestions the government needed to choose between growth and fiscal order as a “false choice.”
The pound climbed 0.6 percent to $1.4849 at 4:53 p.m. in London, and yields on 10-year gilts fell 6 basis points to 3.45 percent.

wymondham

It's a coalition ..... give and take all round!!